How India’s IT giants are cutting costs

December 12, 2008


Indian IT companies are becoming more innovative in terms of cutting costs and, interestingly, they are now seeking ideas from their employees!

While multi-national companies are on a job-cutting spree, the mantra for Indian companies is ‘cut costs’. From cutting down on snacks, travel, telephone bills, power, stationery bills and even tissue rolls in rest rooms, the going gets tougher for IT

Infosys

Infosys has asked every employee to save $10 dollar each. This would result into a total savings of about $1 million for the company, says S ‘Kris’ Gopalakrishnan, chief executive officer, Infosys.

The company has set up a portal for employees to send ideas on how to cut costs. The move seems to have worked with the company getting over 1,000 ideas in this direction.

Infosys has also offered a sabbatical to employees who have completed two years in service. Employees will get 50 per cent of their salary during the sabbatical. They also have an option of working with NGOs.

“We will have to look at controlling our costs and expenses, making sure that we run an optimised business. We will have to look at what are the things we need to do in order to prepare ourselves for the recovery,” Gopalakrishnan said.

Infosys will freeze recruitment after meeting this fiscal year’s target of hiring 25,000 employees, he said. Infosys hired 16,000-17,000 employees in the first half of the fiscal year.

Infosys has over 100,000 employees.

Tata Consultancy Services

No sabbatical or social work for employees, says TCS. But the company is serious about cutting down on travel, power, communications, and raising employee productivity.

“We are reviewing all our capital expenditure plans. This includes technology acquisition, infrastructure development, and even travel and power expenses,” S Ramadorai, chief executive officer, TCS said.

TCS is planning lower salaries and stricter appraisal norms next year. Many IT firms are calling employees back to India instead of sending them abroad on different projects. This works out to be cheaper for the companies.

TCS has total staff strength of 120,000.

Wipro

Cost-cutting measures at Wipro took an ugly turn with students from engineering colleges protesting against Wipro’s move to employ engineers at the business process outsourcing (BPO) unit at half the salary they had been offered initially.

However, Wipro has now agreed not to change the salary package for those who are asked to join Wipro BPO.

Wipro employs over 95,000 employees.

Satyam

Satyam Computer Services is following in Infosys’s footsteps. It plans a sabbatical for its employees.

Satyam staff may also be given the option of taking up corporate social responsibility activities, at a lower salary. The company may also look at cutting down perks. The company will take a final call on cost-cutting measures after the third quarter results.

Satyam currently employs 52,865 people.

Source: Rediff


This is the best time to buy a car! check out the prices

December 12, 2008

Car sales have plunged in India in the wake of the economic slowdown. In a bid to revive the auto sector, the government has cut the central value-added tax (Cenvat) by 4 per cent, making cars across the board much cheaper.

All car manufacturers — Maruti, General Motors, Ford, Skoda, Hyundai, Tata Motors, Honda Siel, Toyota Kirloskar, Hindustan Motors, Mahindra & Mahindra and General Motors — have cut prices from Rs 7,000 to Rs 60,000 on all models.

And if you are planning to take an auto loan, here’s some good news, some of the PSU banks — like Punjab National Bank and Canara Bank — have already cut loan rates. Others banks are likely to offer lower rates soon.

Maruti Suzuki India

Maruti Suzuki India has cut prices for a11 car models. The excise duty cut, combined with the discounts that the dealers offer, is a bonanza for customers.

Maruti 800 will be cheaper now by Rs 6,593 to Rs 7,516. Maruti 800 (with AC) will cost Rs 2,39,000. The non-AC model will cost Rs 2, 23,000.

Alto: Price cut by Rs 8,028-Rs 9,814. Dealers are offering a discount of Rs 12,000 on Alto. The Alto Lxi model is now available for Rs 3, 07,000.

Zen Estilo: Cheaper by Rs 11,849 and Rs 12,747. Dealer discount on Zen Estillo is Rs 30,000. So Zen is now priced at Rs 3,55,000.

WagonR: Cheaper by Rs 11,167-Rs 12,793, besides this dealers are offering a Rs 30,000 to Rs 35,000 discount on WagonR. WagonR LX model is now priced at Rs 3,27,000. The LXi model will be available at Rs 3,88,000 and the VXi model will be available for Rs 3,82,000. (All are on road prices)

A-Star: Cheaper by Rs 12,156-Rs 14,392.

Swift will now be cheaper by Rs 12,458-Rs 17,868 across petrol and diesel variants. However, there is no dealer discount on Swift.

DZiRE prices will come down by by Rs 14,699-Rs 21,784 across petrol and diesel variants.

SX4 will see a price cut between Rs 19,752 and Rs 23,187.

Gypsy: Cheaper by Rs 16,326-Rs 16,989

Versa: Cheaper by Rs 11,605 and Rs 15,193

Tata Motors

Tata Motors has cut prices from Rs 25,000 to Rs 66,000 across all models.

Indica Xeta will be now available at Rs 3,11,000 (on the road price)after a discount of Rs 30,000.

Indica DLX will be available at Rs 3,82,000 (on the road price) after a discount of Rs 25,000.

Safari will be cheaper by Rs 25,000.

Indigo prices will be cheaper by Rs 11,000 to 15,000 after the excise duty cut.

Light Commercial Vehicles: Cheaper by Rs 17,000 to Rs 23,000.

Sumo Grande will be cheaper by Rs 66,000.

Medium & Heavy Commercial Vehicles: Cheaper by Rs 30,000 to Rs 60,000

Hyundai Motors

Hyundai Motor India announced a price cut for all its models by up to Rs 44,792.

Hyundai Santro will be cheaper by Rs 8,834 and Rs 12,492. The Santro petrol GLS will now be available for Rs 3,36,543 and Rs 3,79,188 (on the road), Santro GLM is at Rs 3,40,178(and Rs 3,83,180(on the road).

The Getz would be cheaper by Rs 13,413-Rs 19,422 across different variants. The Getz GLS wil cost Rs 4,71,728 5,28,703 (on the road). The Getz GLX wil cost Rs 5,66,756 (on the road). The Getz GVS CRDi will cost Rs 6,34,543(on the road)

Accent: Cheaper by Rs 15,540. The Accent GLE price is at Rs 5,70,406.

i10 model: Cheaper by up to Rs 18,381. The i10 D-Lite (S) is now priced at Rs 3,84,914 (on the road). The i10 D-Lite (M) is priced at Rs 3,88,931(on the road). The i10 Era (S) is now available at Rs 4,24,587 (on the road).

Verna: Price cut between Rs 19,625 and Rs 26,174
Sonata: Cheaper between Rs 38,006 and Rs 44,792.

The price of sports utility vehicle Tucson will not be cut as it is imported as a completely built unit.

Dealars are offering a discount of Rs 13,000 on the Santro GLS model. Insurance will be free for one year on Santro and Getz models.

Source: Rediff